In the last eight years, Europe has seen approximately half of its PCB fabricators go out of business. The reason wasn’t due to shrinking demand; rather, it was a global sea change. As everyone knows, sources in Asia can supply PCBs at lower cost to the European board buyers. The strong Euro currency versus the U.S. dollar has even made the purchases of goods from China more cost-effective. Larger Asian PCB fabricators have established their own route to markets in Europe. However, medium and smaller Asian PCB fabricators must sell through agents and distributors. As a result, many PCB fabricators are no longer part of the supply chain.

But there are disadvantages to this new global supply chain. The user of these PCBs in Europe often must deal with a logistics expert, a sales agent, and not with an experienced and technologically competent PCB fabricator.

Under the leadership of EIPC’s Paul Waldner (President) and Michael Weinhold (Technical Director), the organization found that European PCB fabricators wanted to better understand how Chinese companies conduct business, including the technical, quality and supply issues they face. Some also were interested in forming partnerships with would-be Asian competitors.

Participants at the EIPC Technology Trip visit Kunshan Huaxin Circuit Board Corp.

Based on members’ input, EIPC organized a technology excursion. Nineteen participants traveled to Shanghai in March to visit the China Printed Circuit Association (CPCA) show. In addition, the group visited eight PCB fabricators in the area of Shanghai and Suzhou, including: Printronics, Hua Yin, Meadville Electronics Co. (two locations), Su Hang, Hua Xin, Parlex, and Goodboard.

A discussion with top management and a visit at the shop floor in the factories provided an outstanding overview of fabrication technology, management philosophy, and the Chinese workers’ commitment. The future connection for cooperation was also discussed.

High quality solder mask applied by using screen-printing technology. A large amount of solder mask is still using screen-printing processes. Highly skilled operators, clean rooms and “manageable panel sizes” allow the use of screen-printing.

The type of PCBs being manufactured in high yields very much depends on the factories’ sophistication. Some plants built 20 years ago were suitable only for production of wider lines and spaces—as well as larger holes. These companies invested very little to upgrade equipment and processes. However, every company we visited had a very clean appearance—even the older factories demonstrated a good working environment. On the other hand, the newer companies were highly automated, using the most effective material handling systems and material flow processes.

Visiting the CPCA Show

EIPC Technology Trip participants were registered as VIP visitors for the CPCA Show 2005. The show is one of the most important exhibitions for manufacturing of PCBs in China. As VIPs the EIPC Tour visitors had free access to the Internet, could use the VIP lounge for business discussion, including their guests.

With the help of the CPCA and the support of Cimnet in Asia, the EIPC had a dinner party with more then 50 leaders of the Chinese printed circuit industry. This type of networking event provided good contacts between the tour participants and the top leaders in China.

The visit to the CPCA show also opened doors to Chinese material suppliers. Here, laminate and masslam technology was well received. TUC, one of the high-end laminate and masslam factories in Taiwan (with new facilities also in China), showed product used in Japan, Taiwan and China.

Cultural Events

The EIPC Technology Tour also included visits to China’s more traditional industry, with a visit to a silk factory. It also experienced the super-fast Shanghai Maglev Train, which runs on a magnetic field. The train reached speeds of up to 430 Km/hour.

A visit to the Classical Gardens of Suzhou. It is impressive to see how Chinese architects have designed such beautiful gardens several hundred years ago.

On the first evening of our stay, participants enjoyed a boat tour of the Huangpu River, connecting Shanghai and the Chinese sea. Later in the week, we toured the Grand Canal on a river boat. It is the longest man-made canal in the world: 1794 Km built in the 7th century. In Suzhou, the group visited the historic Master-Of-Nets-Garden where Chinese theatre was shown. The last day of the tour showed participants the town of Zhouzhuang. Built during the Ming and the Qing Dynasty 900 years ago, the town is divided by many canals. UNESCO selected Zhouzhuang as a World Culture Heritage site.

What Does the Future Hold?

Connections were made with key suppliers of the Chinese PCB industry. The EIPC Technology Tour provided good information regarding Chinese technology capabilities and possible partnerships. By enabling the PCB fabricator to source lower cost PCBs from Chinese partners, the future looks promising for both regions.

The members of the EIPC Technology dressed up to visit the Parlex factory in Quingpu. This is a high-end assembly shop dedicated to assemble rigid flex PCBs and molding circuits together with mechanical parts to subassemblies.

Based on the request from EIPC members who could not participate in the first trip, it will organize an additional excursion from November 27 to December 4, 2005 to see the PCB industry in South China. Contact Kirsten Westenberg at the EIPC office in Maastricht by emailing: KWestenberg@eipc.org